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Tax Administration Act 1994

Remission, relief, and refunds

183I: Time when cancellation takes effect

You could also call this:

"What happens when a tax debt is cancelled"

Illustration for Tax Administration Act 1994

When your tax liability or obligation is cancelled, it is like it never existed from the start. You are not liable to pay interest or a civil penalty for a tax liability that is cancelled. The cancellation goes back to the time the tax liability or obligation first arose.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM358783.

Topics:
Money and consumer rights > Taxes
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"Asking to reduce or cancel a tax or interest amount you owe"

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184: Refund of tax paid on income subsequently exempted by Order in Council, or

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Part 11Remission, relief, and refunds

183ITime when cancellation takes effect

  1. Where a taxpayer's tax liability or obligation is cancelled under this Part, the cancellation is deemed to take effect at the time the tax liability or obligation arose.

  2. Without limiting subsection (1), a taxpayer is never liable to pay interest or a civil penalty in respect of a tax liability or obligation that is cancelled.

Notes
  • Section 183I: inserted, on , by section 62 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).